MGM Holdings Inc., parent company of Metro-Goldwyn-Mayer, said it turned a profit for 2012, much of it on the strength of Skyfall, the 23rd James Bond film, and The Hobbit: An Unexpected Journey.
MGM’s profit totaled $129 million for the year on revenue of $1.38 billion. the company said in had an adjusted profit (i.e. what the profit would have been if it didn’t have to pay taxes, interest and other costs) of $286 million, according to a company statement. That measure, known as EBITDA (or earnings before interest, taxes, depreciation and amortization), is used by some investors as a way to gauge a company’s financial performance.
MGM said it was the first studio to have back-to-back films with $1 billion or more in ticket sales each. The company had a $40.2 million profit for the year’s fourth quarter (a period that included the releases of Skyfall and The Hobbit), and $147.7 million EBITDA. That compares with an $11 million loss (and $19.4 million EBITDA profit) for 2011’s fourth quarter.
Fourth-quarter revenue totaled $902.6 million. or 65 percent of the revenue MGM had for the entire year.
MGM co-financed both of its hit movies, Skyfall with Sony Pictures and The Hobbit with Time Warner’s Warner Bros. Skyfall also involved splitting the take with Eon Productions, which produces the 007 films.
MGM went through bankruptcy in 2010, which resulted in the current executive team led by CEO Gary Barber being installed.